Airbnb strikes deal with state of Guerrero

State will charge a 3% tax on bookings made through the online reservation service

Wednesday, February 28, 2018

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The state of Guerrero is hoping to boost tourism by signing a deal with the online hospitality service Airbnb.

The intention is to promote destinations within the state while at the same time diversify its tourism offer and boost Guerrero’s image and attractions on the international stage, said the administration and finance secretary.

Héctor Apreza Patrón predicted that the agreement will also contribute to attracting more investment and in creating jobs.

It also provides the state with a bit of new tax revenue. The government will charge a 3% tax on bookings, with which it expects to generate 12 million pesos a year (US $637,000). The tax will be collected by Airbnb.

During 2017, 120,000 people who visited Guerrero stayed in Airbnb-sourced accommodations, representing average revenue of 47,000 pesos (US $2,500) per host. The state has about 3,200 hosts on the site, primarily in Acapulco, Ixtapa-Zihuatanejo and Taxco.

During the current year Airbnb is focusing on promoting domestic tourism by increasing the number of hosts.

It is also looking to create broader experiences for guests by encouraging hosts to offer activities for their guests, adding value to their trip.

In Mexico, Airbnb users can find some 90 attractions, ranging from tasting mezcal or chile varieties, attending a Lucha Libre match or touring taco stands. Travelers can also attend workshops where they can learn to make traditional crafts or bake traditional bread.

Such experiences create more business opportunities, said the recently appointed CEO of Airbnb México, Ángel Terral.

He added that in a country like Mexico, where 16% of GDP comes from tourism, Airbnb has the opportunity to see continued growth, aiding in “building a more just and less unequal society.”

As of last November there were 48,000 Mexican hosts registered with Airbnb, who have welcomed over 2 million guests, according to data provided by the service.

The cooperation agreement with Guerrero is the fourth it has signed with a Mexican state.